ILF

Conservation - Economics

fencerow

 

Why should I worry about erosion when my yields are continually increasing?

Soil erosion has costs that farmers don’t often recognize.  Soil organic matter is needed to produce a crop, and losing this to erosion is a cost that isn’t often considered.  We can keep adding inputs to offset the loss of soil organic matter, but this is a cost.  For example, if your soil has 5 percent organic matter, the loss of a ton of soil would include 100 pounds of organic matter.  It is difficult to determine exactly the value of this organic matter but if we use the cost of dry weight manure as a proxy, then organic matter would be worth about $.10 a pound.  So, 100 pounds of organic matter would be worth approximately $10 per ton of 5 percent soil. 

I often hear about costs to society from erosion?  What does this mean and what are some examples?

Soil erosion is composed of two main categories.  One is the direct cost to the farmer and the other is the indirect cost to society.  An example of the societal cost would be the decreased life of reservoirs due to increased siltation caused by erosion. Another cost is cleaning roadway ditches because they fill in with soil that has left the field.  Increased turbidity in the water makes it difficult for fish to find spawning sights and it makes it expensive to clean the water for those using surface water for drinking. Fertilizer and pesticides can enter the water attached to soil particles.  These costs are difficult to measure, but they are substantial.  The cost of off-site erosion is estimated at $11 per ton using the average of recent analysis by the USDA/NRCS and estimates published in Science magazine and the International Journal of Sustainable Agriculture.


Is it possible to get conservation provisions in a lease?

Yes. It is not only possible, but it is desirable.  A tenant and landlord should include soil conservation practices as a part of their lease negotiation.  Provisions to cover the interest of both parties can be put in writing in the lease.  For examples of areas to consider go to the Ag Decision Maker home page at: www.extension.iastate.edu/agdm.   This web site contains a wealth of general information and specific information for leases and lease arrangements.

Iowa farmland is increasingly being owned by older people. How will this change in demographics effect conservation practices?

Approximately one-fourth of Iowa’s land is owned by people over 75 years old.  Most of them indicate they will pass the land to their children.  This indicates a likely increase in absentee ownership, as the land is divided among the children, many of whom will not live in Iowa.  Preliminary studies seem to indicate that an increase in absentee ownership will not automatically lead to a decrease in soil conservation.  Most farmers will farm the land in a similar manner whether it is owned or rented.

One of the big differences is that renters will tend to take a shorter term point of view when it comes to implementing conservation practices.  Their control of the land is less certain and thus they are less likely to want to make long term commitments.  Whether or not landlords are diligent in ensuring their long-term interest is honored remains to be seen. 

Will I see a yield decrease from no-till?

Any new practice comes with a learning curve, therefore results in the first years of no-till may vary.  Experienced ILF cooperators report average yield reductions of 5-6 percent in corn and actually experience higher average soybean yields with no-till practices. 

More importantly, even with a lower yield, no-till can be more profitable because less labor, fuel, and machine hours went into producing the crop.   Generally, less equipment and horsepower is needed for no-till systems, so the fixed costs of your system can be reduced as well.

Other Resources:

For information about the Conservation Reserve Program:
CRP: It's in Your Hands (USDA-NRCS)

For information about financial and technical assistance for conservation programs:
A Guide to Conservation Programs for Iowa's Landowners
(USDA-NRCS)

For information about RUSLE2:
RUSLE2 Overview
http://www.ia.nrcs.usda.gov/technical/RUSLE2.html

Department of Ecomonics, Iowa State University

 

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